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2009-10
Departmental Performance Report



Natural Resources Canada






Supplementary Information (Tables)






Table of Contents




Sources of Respendable and Non-Respendable Revenue


Respendable Revenue
($ millions)
Program
Activity
Actual
2007-08
Actual
2008-09
2009-10
Main
Estimates
Planned
Revenue
Total
Authorities
Actual
 
Economic Opportunities for Natural Resources   2.2 2.6 2.8 2.6 3.3
Natural Resource Based Communities   0.9 0.2 0.2 0.2 0.2
Clean Energy   12.5 14.2 15.2 14.2 12.4
Ecosystem Risk Management   0.6 1.7 2.9 1.7 2.6
Adapting to a Changing Climate and Hazard Risk Management   5.6 7.7 11.0 9.9 7.2
Natural Resource and Landmass Knowledge for Canadians   1.8 0.7 0.4 0.7 0.5
Geomatics Revolving Fund   3.9 2.0 2.0 2.0 3.0
Earth Sciences 6.0          
Energy 11.3          
Forest 1.2          
Minerals and Metals 7.8          
 
Total Respendable Revenue 26.3 27.5 29.1 34.5 31.3 29.2

 


Non-Respendable Revenue
($ millions)
Program
Activity
Actual
2007-08
Actual
2008-09
2009-10
Main
Estimates
Planned
Revenue
Total
Authorities
Actual
 
Economic Opportunities for Natural Resources   2898.2 1774.4 1774.4 1433.1 1433.1
Natural Resource Based Communities   0.4 0.0 0.0 0.2 0.2
Clean Energy   10.8 0.0 0.0 12.2 12.2
Ecosystem Risk Management   0.6 0.0 0.0 0.1 0.1
Adapting to a Changing Climate and Hazard Risk Management   2.8 0.0 0.0 0.8 0.8
Natural Resource and Landmass Knowledge for Canadians   1.4 0.0 0.0 0.7 0.7
Geomatics Revolving Fund   0.1 0.0 0.0 0.0 0.0
Earth Sciences 3.0          
Energy 1887.6          
Forest 1.3          
Minerals and Metals 2.7          
 
Total Non-respendable Revenue 1894.6 2914.3 1774.4 1774.4 1447.1 1447.1



User Fees Reporting


User Fees


Fee Category: Explosives licence and inspection fees.

Fee Type: Regulatory

Fee-setting Authority: Explosives Act

Date Last Modified: 2009

Performance Standards: 95% of the time, initial factory applications will be completed within 60 days of receipt of completed documentation; renewals and all other authorizations will be processed within 30 days of a complete request. 

Performance Results: Licensing turnaround times have been acceptable to stakeholders. Results indicate the performance standards were met or exceeded 95% of the time.


(thousands of dollars)
  2009-2010 2010-2011 2011-2012 2012-2013
Forecast Revenue 2200 1889 1889 1889
Actual Revenue 2174 Not Applicable Not Applicable Not Applicable
Estimated Full Cost 4636* 4767* 4900* 5037*

*excluding PSAT


Fee Category: Seismic data

Fee Type: Optional

Fee-setting Authority: Resources and Technical Surveys Act

Date Last Modified: 2004

Performance Standards: For provision of accurate location and magnitude of strong earthquakes in Canada, turnaround time is normally within 2 hours during working hours and within 4 hours outside of working hours. Preliminary confirmation is normally available to clients within 15 minutes during normal working hours and on our Web site.
For all other requests for standard seismic data, turnaround time is within five working days. Complex requests are negotiated with the client.

Performance Results: Service standards are reviewed annually (inquiries are recorded) - results indicate greater than 95% compliance with standards.


(thousands of dollars)
  2009-2010 2010-2011 2011-2012 2012-2013
Forecast Revenue 700 700 700 700
Actual Revenue 992 Not Applicable Not Applicable Not Applicable
Estimated Full Cost 700 700 700 700


Fee Category: Map products

Fee Type: Optional

Fee-setting Authority: Resources and Technical Surveys Act, Canada Land Surveys Act

Date Last Modified: 2004

Performance Standards: National Topographic System and Atlas of Canada maps - NRCan sells maps on a wholesale basis from the Canada Map Office to a limited distribution network, and service standards reflect this.

Response time for information requests is two working days. Order processing time: the CMO will strive to fill orders received from the RDC within five (5) working days (excluding Saturdays, Sundays and statutory holidays in the Province of Ontario), upon approved credit and provided account is in good standing. Hours of operation, 08:30 - 16:30 EST.

Performance Results: The service standard of five working days is met 95% or the time. The Centre for Topographic Information of the Mapping Services Branch is certified ISO 9001:2000, hence undergoes regular management review of quality objectives, discrepancy reporting processes, and client consultation. Performance issues are addressed through ISO Quality Objectives which are updated each year to address issues that may arise.

Aggregate annual data is available on request.


(thousands of dollars)
  2009-2010 2010-2011 2011-2012 2012-2013
Forecast Revenue 250 100 100 100
Actual Revenue 105 Not Applicable Not Applicable Not Applicable
Estimated Full Cost 105 100 100 100

 

Fee Category: ISO non-destructive testing

Fee Type: Optional

Fee-setting Authority: Resources and Technical Surveys Act

Date Last Modified: 2002

Performance Standards: Two weeks for processing of a candidate's application form. This period is advertised on application forms 'Instructions for Candidates' available in hard copy or electronically from the NDT Web site. All candidates have this information before applying. *Note: Assessment of foreign applications or unusual training/experience situations may require more time.

Examination results are usually available three weeks from the date of examination. This period is clearly specified in 'letter of approval' issued to the candidate to permit him/her to challenge an examination.

Performance Results: The progress of each client application is recorded and tracked throughout the process - date of receipt, date of review, date of written responses.  While performance has not been formally aggregated to summarize performance against service standards, the absence of stakeholder complaints indicates satisfaction that the published delivery standards are being met. 


(thousands of dollars)
  2009-2010 2010-2011 2011-2012 2012-2013
Forecast Revenue 1300 1100 1400 1500
Actual Revenue 1352 Not Applicable Not Applicable Not Applicable
Estimated Full Cost 1352 1100 1400 1500

 

Fee Category: Air Photo Products

Fee Type: Optional

Fee-setting Authority: Resources and Technical Surveys Act

Date Last Modified: 2004

Performance Standards: Aerial Photography - Order processing time by the National Air Photo Library is ten working days, priority service five working days; response time for information requests of ten working days 80% of the time; production error rate of 2% or less; hours of operation, 08:30 - 16:30 EST.

Performance Results: The service standard is met 80% of the time.  Performance issues are addressed through ISO Quality Objectives which are updated each year to address issues that arise.

Performance results are monitored continuously. Aggregate annual data is available on request.


(thousands of dollars)
  2009-2010 2010-2011 2011-2012 2012-2013
Forecast Revenue 400 500 500 500
Actual Revenue 559 Not Applicable Not Applicable Not Applicable
Estimated Full Cost 559 500 500 500

 

Fee Category: Fees charged for the processing of access requests filed under the Access to Information Act

Fee Type: Regulatory

Fee-setting Authority: Access to Information Act

Date Last Modified: 1992

Performance Standards: Response provided within 30 days following receipt of request; the response time may be extended pursuant to section 9 of the ATIA. Notice of extension to be sent within 30 days after receipt of request.
The Access to Information Act provides fuller details: http://laws.justice.gc.ca/en/A-1/218072.html.

Performance Results: Met prescribed standards 91.5% of the time.


(thousands of dollars)
  2009-2010 2010-2011 2011-2012 2012-2013
Forecast Revenue 5 5 5 5
Actual Revenue 1 Not Applicable Not Applicable Not Applicable
Estimated Full Cost 663 663 663 663


Fee Category: Other Products

Fee Type: Optional

Fee-setting Authority: Resources and Technical Surveys Act

Date Last Modified: 2004

Performance Standards: For aeromagnetic, radiometric and gravity data, the Geoscience Data Centre (GDC) of ESS provides maximum 10 day turn-around on external requests for data (average turnaround for a standard request is one day). We also provide on-line access through the Geoscience Data Repository for Geophysical and Geochemical Data (GDRGG). For more info on service standards see the Web site.

Performance Results: Performance is aggregated against standards annually. In 2009-10 100% of requests were in compliance with standards.

The number of inquires has dropped significantly since data has been made available free of charge through the GDRGG. Typically there are 10 to 20 requests for information made to the GDC annually and 10,000 to 15,000 downloads from the online service annually. The GDRGG is available 24/7, 365 days per year.


(thousands of dollars)
  2009-2010 2010-2011 2011-2012 2012-2013
Forecast Revenue 200 80 80 80
Actual Revenue 38 Not Applicable Not Applicable Not Applicable
Estimated Full Cost 38 80 80 80

External Fees


External Fee Service Standard Performance Results Stakeholder Consultation
Explosives licence and inspection fees 95% of the time, initial factory applications will be completed within 60 days of receipt of completed documentation; renewals and all other authorizations will be processed within 30 days of a complete request. Licensing turnaround times have been acceptable to stakeholders. Results indicate the performance standards were met or exceeded 95% of the time. Stakeholder groups are in agreement with licensing and authorization service standards. No formal complaints to this proposal have been received.
Seismic data

For provision of accurate location and magnitude of strong earthquakes in Canada, turnaround time is normally within 2 hours during working hours and within 4 hours outside of working hours. Preliminary confirmation is normally available to clients within 15 minutes during normal working hours and on our Web site.

For all other requests for standard seismic data, turnaround time is within five working days. Complex requests are negotiated with the client.
Service standards are reviewed annually (inquiries are recorded) - results indicate greater than 95% compliance with standards. None planned at present (regular consultation provided through the Lithoprobe Seismic Processing Facility in Calgary). Client feedback on service expectations are encouraged through questionnaire that accompanies responses to data requests.
Map products

National Topographic System and Atlas of Canada maps - NRCan sells maps on a wholesale basis from the Canada Map Office to a limited distribution network, and service standards reflect this.

Response time for information requested is two working days. Order processing time: The CMO will strive to fill orders received from the RDC within five (5) working days (excluding Saturdays, Sundays and statutory holidays in the Province of Ontario), upon approved credit and provided account is in good standing. Hours of operation, 08:30 - 16:30 EST.

Service standard of five working days is met 95% of the time.  Service standards are included in the annual management review of Quality Objectives under ISO 9001:2000.  ISO Quality Objectives are updated each year to address issues as they arise. Regular discussions and meetings are held with stakeholders.  Service standards are reviewed continuously and included as part of the Discrepancy Management Reports (DMRs).  Ongoing client and service feedback are used to ensure constant improvement as part of ISO 9001 quality system.
Air Photo products

Aerial Photography - Order processing time by the National Air Photo Library is ten working days, priority service five working days; response time for information requests of ten working days 80% of the time; production error rate of 2% or less; hours of operation, 08:30 - 16:30 EST.

Service standard of ten working days is met 80% of the time.  Service standards are included in annual management review of Quality Objectives under ISO 9001:2000.  ISO Quality Objectives are updated each year to address issues as they arise. Major survey completed in 2004. Initated needs requirement based on sales statistics to determine future directions for improvement.  Service standards are reviewed continuously and included as part of the Discrepancy Management Reports (DMRs).  Ongoing client and service feedback are used to ensure constant improvement as part of ISO 9001 quality system.
Fees charged for the processing of access requests filed under the Access to Information Act

Response provided within 30 days following receipt of request; the response time may be extended pursuant to section 9 of the ATIA. Notice of extension to be sent within 30 days after receipt of request.

The Access to Information Act provides fuller details: http://laws.justice.gc.ca/en/A-1/218072.html.
Met prescribed standards 91.5% of the time The service standard is established by the Access to Information Act and the Access to Information Regulations. Consultations with stakeholders were undertaken by the Department of Justice and the Treasury Board Secretariat for amendments done in 1986 and 1992.
Other products For aeromagnetic radiometric and gravity data, the Geoscience Data Centre (GDC) of ESS provides maximum 10 day turn-around on external requests for data (average turnaround for a standard request is one day). We also provide on-line access through the Geoscience Data Repository for Geophysical and Geochemical Data (GDRGG). For more info on service standards see the Web site.

Performance is aggregated against standards annually.  In 2009-10, 100% of requests were in compliance with standards.

The number of inquires to the Geophysical Data Centre has dropped significantly since data have been made available free of charge through the GDRGG.  Typically, there are 10 to 20 requests for information made to the GDC annually and 10,000 to 15,000 down loads from the online service annually.  The GDRGG is available 24/7, 365 days a year. 
Client consultation is performed on an ongoing basis. All web-based clients are provided with a client satisfaction questionnaire including a request for suggestions for improvement. Advent of the GDRGG (web-based access) has significantly reduced requests via the GDC.

Other Information:

Digital Topographical Data (formerly Subscription Data) Is made available free online. As such no fees or revenue have been collected for this service however the associated service standards are being reported on.

Digital Topographic Data National Topographic Data Base (NTDB) Canvec and others - Response time for general information requests is two working days during business hours. Availability of web-site is 24-7 90% of the time, monitored monthly.

Web-site was available 24-7 90% of the time. Performance results are monitored continuously (on-line surveys). Target 95% client satisfaction. Actual satisfaction level for the product quality and delivery is at 89%- website improvements will be made to help clients and improve the satisfaction level.

Complaints acknowledged within two working days - and as per ISO procedures, corrective action is taken immediately. 

Client consultation is ongoing - part of regular ISO process.


Transfer Payment Programs Exceeding $5 million/year


Name of Transfer Payment Program: Clean Energy Fund

Start date: April 23, 2009

End date: March 31, 2014

Description: Clean energy is energy that is produced, transmitted, distributed and used with low or zero greenhouse gas (GHG) and other air emissions. The Government of Canada has committed that Canada’s total GHG emissions be reduced by 17 percent from 2005 levels by 2020 and that 90 percent of Canada’s electricity be provided by non-emitting sources such as hydro, nuclear, clean coal and wind power by 2020.

In support of these goals, the Clean Energy Fund provides $795M over five years for the demonstration of promising technologies, including large-scale carbon capture and storage (CCS) projects, and renewable energy and clean energy systems demonstrations. $205M of the original one billion was reallocated to ecoEnergy Retrofit.

Strategic Outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved: 3 large scale CCS demonstrations now underway and 19 renewable and clean energy technology demonstrations will begin by summer 2010

Program Activity: Clean Energy
($ millions)
  Actual
Spending
2007-08
Actual
Spending
2008-09
Planned
Spending
2009-10
Total
Authorities
2009-10
Actual
Spending
2009-10
Variance(s)
Total Grants            
Total Contributions       30 30 30
Total Other types of transfer payments            
Total Program Activity(ies)       30 30 30

Comment(s) on Variance(s): At the time of the RPP the Clean Energy Fund was not announced.

Audit completed or planned: to be completed as part of Economic Action Plan audit in 2010

Evaluation completed or planned: N/A at this stage

 

Name of Transfer Payment Program: :  ecoENERGY for Biofuels

Start date: April 1st , 2008

End date: March 31st , 2017

Description:

ecoENERGY for Biofuels supports the production of renewable alternatives to gasoline and diesel and encourages the development of a competitive domestic renewable fuels industry.  The program provides an operating incentive to facilities that produce renewable alternatives to gasoline and diesel in Canada, based on production volumes.  ecoENERGY for Biofuels will invest up to $1.48B over 9 years, starting April 1st , 2008, in support of biofuels in Canada.

The initial program volume is 2.5B litres of domestic production by March 2012, with a target of 2B litres of renewable alternatives to gasoline and 500M litres of renewable alternatives to diesel.  Key changes to the program were proposed and approved in 2009.  This involved a realignment of the nine-year funding allocation, a new payment regime and a new decision-making methodology.

Strategic Outcome:

Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved:

The Program has currently 21 signed contribution agreements with companies representing a total commitment of $966.2M and a domestic production of 1.6B litres of biofuels (1.4 billion litres of ethanol and 0.189B litres of biodiesel). 

As of April 1st ,  2010, the ecoENERGY for Biofuels program has received an additional 68 applications from both existing and new producers representing approximately $2,061M and the potential production of 540M litres of renewable alternatives to gasoline and 1576M litres of renewable alternatives to diesel per year by March 2012 and increasing thereafter. Currently, $473M is available within the program budget.

Program Activity: Clean Energy
($ millions)
  Actual
Spending
2007-08
Actual
Spending
2008-09
Planned
Spending
2009-10
Total
Authorities
2009-10
Actual
Spending
2009-10
Variance(s)
Total Grants            
Total Contributions   92.2 185.4 187.5 177.7 7.7
Total Other types of transfer payments            
Total Program Activity(ies)   92.2 185.4 187.5 177.7 7.7

Comment(s) on Variance(s): Applications did not materialize in time to qualify for funding in 2009-10.  In addition, some Proponents produced lower than expected volumes, something that can not be predicted. The Program also received $8.6M from Supps. C after the December forecast.

Audit completed or planned: An audit of ecoENERGY for Biofuels began in fiscal year 2010-2011.

Evaluation completed or planned: An evaluation of ecoENERGY for Biofuels is planned for 2011-2012.

 

Name of Transfer Payment Program: ecoENERGY for Renewable Power Initiative

Start date: April 1st , 2007

End date: March 31st , 2011

Description: The ecoENERGY for Renewable Power program offers a production incentive of 1 cent per kilowatt hour for ten years to eligible producers of electricity from low impact renewable power sources such as wind, low impact hydro, biomass, geothermal, photovoltaics and ocean energy.

Strategic Outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved: At year end, 100 contribution agreements were in place representing 4419 megawatts (MW) of renewable power capacity and commitments of $1.384B over 14 years.  Of the 100 agreements, 61 projects were in operation representing 2894 MW of renewable power capacity and commitments of $912M.

Program Activity: Clean Energy
($ millions)
  Actual
Spending
2007-08
Actual
Spending
2008-09
Planned
Spending
2009-10
Total
Authorities
2009-10
Actual
Spending
2009-10
Variance(s)
Total Grants            
Total Contributions 16.0 30.2 72.2 64.5 56.7 15.5
Total Other types of transfer payments            
Total Program Activity(ies) 16.0 30.2 72.2 64.5 56.7 15.5

Comment(s) on Variance(s): The ecoENERGY Renewable Power Program had anticipated more projects being built and commissioned during 2009-2010.  Some projects experienced commissioning delays due to construction issues, and others were cancelled due to difficulties in obtaining financing. A significant portion of the identified variance will be cash managed within the Clean Energy suite of initiatives in order for the funding to be available to the program in future years.

Audit completed or planned: During fiscal year 2009-2010, two financial audits of recipients were completed under the program.

Evaluation completed or planned: In 2009-2010, the department began an evaluation of renewable energy programs, including the ecoENERGY for Renewable Power program, and results are expected in fiscal year 2010-2011

 

Name of Transfer Payment Program: ecoENERGY Retrofit Initiative
Grants in support of ecoENERGY Retrofit – Homes (Voted)
Contributions in support of ecoENERGY Retrofit – Small and Medium Organizations (Voted)

Start date: 2007

End date: March 2011

Description: The ecoENERGY Retrofit Initiative is a program to provide financial assistance to Canadian homeowners and small industrial and commercial businesses and institutions to support energy efficiency retrofits. There are three components:

  • a home energy efficiency retrofit incentive (grant funding noted in the table below);
  • an energy efficiency retrofit incentive to accelerate the implementation of energy retrofit projects for non-regulated industries with less than 500 employees per facility and commercial/institutional buildings less than 20,000 square metres in size (contribution funding noted in the table below); and
  • a one-year extension of the Existing Buildings Initiative, which supported the retrofitting of existing commercial and institutional buildings (contribution funding in 2007-08 only).

Strategic Outcome: ):  Canada is a world leader on environmental responsibility in the development and use of natural resources. 

Results Achieved: As of March 31st , 2010, The ecoENERGY Retrofit - Homes program has received 293,716 grant applications and performed over 609,000 pre-retrofit evaluations.  It has paid out over $350M to 274, 588 grant recipients, leading to a 21% reduction on average in GHG levels for retrofitted homes.  As of March 31st, 2010, the EcoEnergy Retrofit – Small and Medium Organizations (SMO) program has signed contribution agreements for 494 buildings projects and 354 industry projects.  On a combined basis, these projects energy savings of 1,869,133 Gigajoules and greenhouse gas savings of approximately 157 kilo-tonnes.

Program Activity:
($ millions)
  Actual
Spending
2007-08
Actual
Spending
2008-09
Planned
Spending
2009-10
Total
Authorities
2009-10
Actual
Spending
2009-10
Variance(s)
Total Grants 12.0 89.7 46.0 267.9 267.9 221.9
Total Contributions 0 3.9 4.4 6.9 6.7 2.3
Total Other types of transfer payments            
Total Program Activity(ies) 12.0 93.6 50.4 274.8 274.6 224.2

Comment(s) on Variance(s): Program received 139M in Supplementary Estimates A as part of Budget 2009 Implementation Act. The program also received an additional 45M in Supplementary Estimate C, followed by an incremental 37.9M. This last increase was a measure to accommodate the very high demand for retrofit grants and was to be paid back in 2010-2011.

Because demand from small building owners exceeded the 09/10 budget, the program was required to seek additional funding for the fiscal year.  This money was provided through a cash management exchange between Biofuels and SMO between FY 2008/09 and 2009/10.

Audit completed or planned: An audit of EcoENERGY Retrofit – SMO was completed in 2009.  An audit of the ecoENERGY Retrofit – Homes was released in 2010.

Evaluation completed or planned: An evaluation of ecoENERGY Retrofit is currently ongoing and should be completed in 2010.

 

Name of Transfer Payment Program: ecoENERGY Technology Initiative

Start date: April 1st , 2007

End date: March  31st , 2012

Description: The ecoENERGY Technology Initiative is a $230M investment in science and technology by the Government of Canada to accelerate the development and market readiness of technology solutions in clean energy.  This initiative is directed towards increasing clean energy supplies, reducing energy waste, and reducing pollution from conventional energy.

Strategic Outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved: 7 carbon capture and storage projects now underway

Program Activity: Clean Energy
($ millions)
  Actual
Spending
2007-08
Actual
Spending
2008-09
Planned
Spending
2009-10
Total
Authorities
2009-10
Actual
Spending
2009-10
Variance(s)
Total Grants            
Total Contributions 0.7 13.6 31.1 28.5 28.5 2.6
Total Other types of transfer payments            
Total Program Activity(ies) 0.7 13.6 31.1 28.5 28.5 2.6

Comment(s) on Variance(s): Expenses were deferred to a future year.  The variance was cash managed within the sector, and funds will be made available to meet project liabilities in future years.

Audit completed or planned: audit planned for fiscal year 2011-12

Evaluation completed or planned: Evaluation of components undertaken on ongoing basis as part of Program Activity Architecture evaluation process.

 

Name of Transfer Payment Program: Federal Response to the Mountain Pine Beetle Infestation in British Columbia

Start date: April 1st , 2007

End date: March 31st , 2010

Description: The Program was designed to slow the eastward spread of the Mountain Pine Beetle (MPB), recover economic value from beetle-killed trees, and to reduce post-beetle impacts on communities and forest resources in areas affected by the epidemic.

Strategic Outcome: Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians.

Results Achieved:

Slowing the Spread
Surveys of beetle populations, direct control of active beetle infestation and control burns were completed. Research was completed on remote sensing applications to improve pest disturbance mapping and on upgrading beetle threat mapping.   The Program was successful in slowing the rate of eastward MPB spread.
               
Recovering Economic Value
Knowledge was generated on post-beetle timber shelf-life and on the use of post-beetle timber salvage in the manufacture of standard forest products including panelboards, pulp and paper, and energy from forest biomass.

Protecting Communities and Forest Resources
The Program assisted 32 non-native communities and 59 First Nations Bands in removing post-beetle forest fuels and hazardous trees.  The Program also assisted another 9 First Nations Bands with beetle control.
Knowledge was generated on post-beetle secondary forest structure, forest regeneration, integration of non-timber values into salvage harvesting, on stand and watershed hydrology, and on the post-beetle threat to Fraser River flooding in lower mainland BC.   

Program Activity: Adapting to a Changing Climate and Hazard Risk Management
($ millions)
  Actual
Spending
2007-08
Actual
Spending
2008-09
Planned
Spending
2009-10
Total
Authorities
2009-10
Actual
Spending
2009-10
Variance(s)
Total Grants            
Total Contributions 30.8 17.5 8.8 9.0 0.2 0.2
Total Other types of transfer payments            
Total Program Activity(ies) 30.8 17.5 8.8 0.2 0.2 0.2

Comment(s) on Variance(s): Reflects adjustment for cash flow management within the Program.

Audit completed or planned: Recipient audit completed in fiscal year 2009-2010.

Evaluation completed or planned: Evaluation underway and scheduled for completion early in fiscal year 2010-2011 as part of 3.1.2 Forest Disturbances Science and Application.


Name of Transfer Payment Program: Forest Industry Long Term Competitiveness Strategy– Promoting Forest Innovation and Investment

Start date: December 7th , 2006

End date: March 31st , 2010

Description: There are three initiatives in this program: the consolidation of Canada’s three forest research institutes, the creation of the Canadian Wood Fibre Centre, and investment in forest innovation. These measures will enhance economic opportunities for Canada’s forest sector as a result of increased investment in forest innovation.

Institute Consolidation: FPInnovations – The consolidation of Canada's three forest research institutes (Forintek, FERIC and Paprican) along with NRCan’s Canadian Wood Fibre Centre will provide greater efficiency, synergies and strength in innovation and R&D, and will facilitate speaking with a stronger common voice on forest sector issues.  Referred to as FPInnovations, this merger will create the world’s largest forest research institute.  Additional information on FPInnovations can be found at http://www.fpinnovations.ca/.

Canadian Wood Fibre Centre – The Canadian Wood Fibre Centre (CWFC) is an NRCan initiative in collaboration with FPInnovations to increase the economic return from Canada's forest resources. Researchers within the CWFC will work in collaboration with researchers from FPInnovations, or wherever the expertise exists to increase the value of Canadian wood fibre.  More information on CWFC can be found at http://cfs.nrcan.gc.ca/subsite/cwfc.

Investments in Forest Sector Innovation – The purpose of this initiative is to direct and harness the expertise of the newly consolidated FPInnovations – in close conjunction with provinces, industry, and academia – to implement new forest innovation investments in transformative technologies relevant to all segments of the forest sector.

Strategic Outcome: Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians.

Results Achieved:

Institute Consolidation: FPInnovations

  • Legal and practical steps required in creating a new corporate entity and absorbing three existing entities have been completed. This includes all aspects from registration of legal names, logos, and other trademarks, to marketing and communications, transfer of properties and assets, and the very challenging issues of harmonizing pay scales and benefit packages, job descriptions, and pension funds.
  • Human resource administrative capabilities have been aligned and integrated to provide the required expertise to meet project needs and to support administration of human resources (e.g. hiring policies, retention strategies, staff development).
  • Financial, project management, and procurement systems have been aligned and integrated to support management decision-making, as well as to provide appropriate and prudent support for operational transactions and basic accounting. This integration has been solidified through the implementation of a single Enterprise Resource Planning system.
  • Director and executive level management have been restructured to create a single, enterprise-wide management team. Governance and advisory bodies have been restructured to support a single Board of Directors that represents the interest of the entire forest sector.
  • Significant further consolidation efficiencies have been achieved through staff rationalization.

Canadian Wood Fibre Centre

  • Knowledge has been generated in collaboration with FPInnovations to enhance the capacity to identify standing timber with desirable fibre attributes and to efficiently produce wood fibre with desirable attributes by developing innovative silvicultural methods, genetics and genomics techniques, and methods to forecast wood volume and quality responses at the tree and stand levels.
  • A knowledge exchange capacity of 30 Industrial Technology Advisors (Forintek Division); 9 Extension specialists (Feric Division); 7 Knowledge Transfer Specialists (CWFC) was created and is being maintained to ensure that the research results generated by the program were implemented to generate new and improved products and processes.

Transformative Technology Program (TTP)

  • Research results have led to the implementation of new truck components which reduces the vehicle tare weights allowing for increased payloads (allows trucks/trailers to hull 3 tonnes more payload) which has resulted in these devices being permitted for use in B.C.
  • Development of the BiOS (Biomass Opportunity Supply) model, which is used to assess the economic supply of forest biomass, is now being used by the Provinces of Ontario, Alberta and Quebec to support the development of regional tenders for new bioenergy projects.
  • Research has now generated enough data (decreasing the capital and operating costs and identifying the potential markets) allowing the construction to begin on a pilot scale demonstration plant producing nano crystalline cellulose (NCC).

 

Program Activity: Economic Opportunities for Natural Resources
($ millions)
  Actual
Spending
2007-08
Actual
Spending
2008-09
Planned
Spending
2009-10
Total
Authorities
2009-10
Actual
Spending
2009-10
Variance(s)
Total Grants            
Total Contributions 22.6 23.7 11.5 11.1 11.1 0.4
Total Other types of transfer payments            
Total Program Activity(ies) 22.6 23.7 11.5 11.1 11.1 0.4

Comment(s) on Variance(s):

Audit completed or planned: A third party recipient audit of FPInnovations for 2008-2009 was completed in spring 2010. The findings were generally positive regarding the management and use of funds. NRCan is working with FPInnovations to address the process improvements identified within the audit.

An internal audit of NRCan management of PFII funds for 2008-2009 was completed in early 2010. Again, the findings were generally positive and NRCan has enacted changes to address the few minor corrective actions identified.

Evaluation completed or planned: Last evaluation was completed in fiscal 09/10.

 

Name of Transfer Payment Program: Investing  in Canada’s Forest Sector

Start date: March 12th , 2009

End date: March 31st , 2011

Description:

The "Investing in Canada's Forest Sector" initiative consists of two main objectives: Promoting Forest Innovation and Investment and Expanding Market Opportunities.

The objective of Promoting Forest Innovation and Investment is to support the goal of sustainable natural resources development by enhancing the long-term economic opportunities for Canada's forest sector as a product of increased investment in forest innovation.There are three initiatives in this program: the consolidation of Canada’s three forest research institutes, the creation of the Canadian Wood Fibre Centre, and investment in forest innovation. These measures will enhance economic opportunities for Canada’s forest sector as a result of increased investment in forest innovation.

The objectives of Expanding Market Opportunities are to: maintain and grow international wood product markets; expand wood use in the North American non-residential construction market; and improve product opportunities for value added wood manufacturers.There are three initiatives in this program: the Canada Wood Export Program, the North American Wood First Initiative, and the Value to Wood Program.  These initiatives aim to increase market opportunities for Canadian wood product producers through market development, branding, and technology development and transfer activities.

Strategic Outcome: Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians

Results Achieved:

Promoting Forest Innovation and Investment:

Institute Consolidation: FPInnovations

  • Legal and practical steps required in creating a new corporate entity and absorbing three existing entities have been completed. This includes all aspects from registration of legal names, logos, and other trademarks, to marketing and communications, transfer of properties and assets, and the very challenging issues of harmonizing pay scales and benefit packages, job descriptions, and pension funds.
  • Human resource administrative capabilities have been aligned and integrated so as to provide the required expertise to meet project needs and to support administration of human resources (e.g. hiring policies, retention strategies, staff development). 
  • Financial, project management, and procurement systems have been aligned and integrated to support management decision-making, as well as to provide appropriate and prudent support for operational transactions and basic accounting. This integration has been solidified through the implementation of a single Enterprise Resource Planning system.
  • Director and executive level management have been restructured to create a single, enterprise-wide management team. Governance and advisory bodies have been restructured to support a single Board of Directors that represents the interest of the entire forest sector.
  • Significant further consolidation efficiencies have been achieved through staff rationalization.

Canadian Wood Fibre Centre

  • Knowledge has been generated in collaboration with FPInnovations to enhance the capacity to identify standing timber with desirable fibre attributes and to efficiently produce wood fibre with desirable attributes by developing innovative silvicultural methods, genetics and genomics techniques, and methods to forecast wood volume and quality responses at the tree and stand levels.
  • A knowledge exchange capacity of 30 Industrial Technology Advisors (Forintek Division); 9 Extension specialists (Feric Division); 7 Knowledge Transfer Specialists (CWFC) was created and is being maintained to ensure that the research results generated by the program were implemented to generate new and improved products and processes.

Transformative Technology Program (TTP)

  • Research results have led to the implementation of new truck components which reduces the vehicle tare weights allowing for increased payloads (allows trucks/trailers to hull 3 tonnes more payload) which has resulted in these devices being permitted for use in B.C.
  • Development of the BiOS (Biomass Opportunity Supply) model, which is used to assess the economic supply of forest biomass, is now being used by the Provinces of Ontario, Alberta and Quebec to support the development of regional tenders for new bioenergy projects.
  • Research has now generated enough data (decreasing the capital and operating costs and identifying the potential markets) allowing the construction to begin on a pilot scale demonstration plant producing nano crystalline cellulose (NCC).
  • Under the Short Term Competitiveness Initiative of the TPP, industry uptake and implementation of technologies and processes form other NRCan-funded FPInnovations programs has greatly increased. Mills and forestry operations have reported immediate financial and operational benefits and returns in many cases.

Expanding Market Opportunities:

Canada Wood Export Program
 Efforts to expand Canadian wood export opportunities in emerging markets continued to produce concrete results, particularly in Asian offshore markets. For example, wood exports to China were up 64% (to $381M) from 2008 levels. The September 2009 adoption of the Shanghai Local Code (which addresses all technical aspects related to light wood frame and hybrid construction) will also help foster a growing demand for Canadian wood products in this important market. In Korea, wood exports were up 10% (to $97.7M) from 2008 levels and Canada regained its position as the top lumber supplier in this market.
North American Wood First Initiative
In Canada, the program successfully influenced $54M in new wood sales in non-residential construction over 69 projects. In targeted parts of the U.S., the program influenced wood use in 77 projects, resulting in an increase in wood sales of $53M.
Value to Wood Program
In 2009-10, the Value to Wood Program continued to support Canadian value-added wood product companies by investing in research and technology transfer. To help generate new and improved wood products and processes for the secondary wood products manufacturing sector, the program funded 24 research projects at five research organizations in New Brunswick, Quebec, Ontario and British Columbia. The program's Industry Advisor Network also performed more than 650 mill visits and technical assessments, and supported more than 200 technical projects across Canada.

Program Activity: Economic Opportunities for Natural Resources
($ millions)
  Actual
Spending
2007-08
Actual
Spending
2008-09
Planned
Spending
2009-10
Total
Authorities
2009-10
Actual
Spending
2009-10
Variance(s)
Total Grants            
Total Contributions     53.6 54.7 54.7 1.1
Total Other types of transfer payments            
Total Program Activity(ies)     53.6 54.7 54.7 1.1

Comment(s) on Variance(s): $1.1 variance reflects cash management within the program.

Audit completed or planned: A third party recipient audit of FPInnovations for 2008-2009 was completed in spring 2010. The findings were generally positive regarding the management and use of funds. NRCan is working with FPInnovations to address the process improvements identified within the audit.

An internal audit of NRCan management of PFII funds for 2008-2009 was completed in early 2010. Again, the findings were generally positive and NRCan has enacted changes to address the few minor corrective actions identified.

Evaluation completed or planned: An Evaluation of the first two years (2007-2009) of the Promoting Innovation and Investment was completed in February 2010. Positive findings were returned – minor program adjustments have been implemented based on recommendations. The Expanding Market Opportunities element Evaluation is currently underway and will be completed in Fall of 2010.

 

Name of Transfer Payment Program: Newfoundland and Labrador Fiscal Equalization Offset Payments (Statutory)

Start date: 2002

End date: Perpetuity

Description: To make the statutory payments to the province to compensate for part of the reduction in fiscal equalization entitlements that would result from offshore revenues being included in the equalization program.

Strategic Outcome: Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians.

Results Achieved: Payments were made to the province in accordance with the provisions of the Act.

Program Activity: Economic Opportunities for Natural Resources
($ millions)
  Actual
Spending
2007-08
Actual
Spending
2008-09
Planned
Spending
2009-10
Total
Authorities
2009-10
Actual
Spending
2009-10
Variance(s)
Total Grants            
Total Contributions 188.6 556.7 0.0 465.3 465.3 465.3
Total Other types of transfer payments            
Total Program Activity(ies) 188.6 556.7 0.0 465.3 465.3 465.3

Comment(s) on Variance(s):

Audit completed or planned: The Office of the Auditor General will be completing an audit of the offshore statutory payments in fiscal year 2010-2011.

Evaluation completed or planned: N/A

 

Name of Transfer Payment Program: Payments to the Newfoundland and Labrador Offshore Petroleum Resource Revenue Fund (Statutory)

Start date: 1987

End date: Perpetuity

Description: To make statutory payments to the province of NL equivalent to the revenue amounts received by Canada in relation to Newfoundland offshore oil and gas activities.

Strategic Outcome: Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians.

Results Achieved: Payment to the province of Newfoundland and Labrador pursuant to the Canada-Newfoundland Atlantic Accord Implementation Act.

Payment amount takes into consideration royalties and corporate income taxes related to the Newfoundland offshore activities.  Actual spending is subject to production levels, prices, exchange rates.

 

Program Activity: Economic Opportunities for Natural Resources
($ millions)
  Actual
Spending
2007-08
Actual
Spending
2008-09
Planned
Spending
2009-10
Total
Authorities
2009-10
Actual
Spending
2009-10
Variance(s)
Total Grants            
Total Contributions 1701.0 2351.0 2045.9 1180.9 1180.9 86.5
Total Other types of transfer payments            
Total Program Activity(ies) 1701.0 2351.0 2045.9 1180.9 1180.9 86.5

Comment(s) on Variance(s): N/A

Audit completed or planned: The Office of the Auditor General will be completing an audit in fiscal year 2010-11.

Evaluation completed or planned: N/A

 

Name of Transfer Payment Program: Payments to the Nova Scotia Offshore Revenue Account (Statutory)

Start date: 1993-94

End date: Perpetuity

Description: To make statutory payments to the province equivalent to amounts received by Canada in relation to offshore activities in accordance with provisions of the Canada-Nova Scotia Offshore Petroleum Resource Accord Implementation Act.

Strategic Outcome: Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians.

Results Achieved: Payments to the province of NS pursuant to provisions of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act.

Payment amount takes into consideration royalties and corporate income taxes related to the Nova Scotia offshore activities.  Actual spending is subject to production levels, prices, exchange rates.

Program Activity: Economic Opportunities for Natural Resources
($ millions)
  Actual
Spending
2007-08
Actual
Spending
2008-09
Planned
Spending
2009-10
Total
Authorities
2009-10
Actual
Spending
2009-10
Variance(s)
Total Grants            
Total Contributions 493.2 577.4 351.5 109.4 109.4 242.1
Total Other types of transfer payments            
Total Program Activity(ies) 493.2 577.4 351.5 109.4 109.4 242.1

Comment(s) on Variance(s):

Audit completed or planned: The Office of the Auditor General will be conducting audit in fiscal year 2010-2011.

Evaluation completed or planned: N/A

 

Name of Transfer Payment Program: The Pulp and Paper Green Transformation Program

Start date: July 30th , 2009

End date: March 31st , 2012

Description: The objective of the “Pulp and Paper Green Transformation Program” is to improve the environmental performance of Canada’s pulp and paper industry, which in turn will contribute to the environmental, and hence commercial, sustainability of the pulp and paper industry.

Strategic Outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.         

Results Achieved:

In the first year of the Program, determination of funding credits to pulp and paper companies in Canada was made based on each company’s production of black liquor during the period January to June 2009.  The process of applying for these credits and the criteria for determining the eligibility of projects for Program funding was refined and communicated to applicants during Fall 2009.  The environmental assessment requirements for projects funded under the Program were also developed and communicated to applicants at that time.

The first proposals were received in October 2009.  Since then, environmental assessments, proposal review and due diligence has been underway.  As of March 31st, 2010, contribution agreements were negotiated for nine projects for a total of more than $180M in funding.  Many more projects are proceeding through the assessment and due diligence processes.  As of April 30th, 2010, the Program has received 41 applications for funding.

As a result of the Program, infrastructure projects are underway in many pulp and paper mills across Canada. Thus far, projects for which agreements have been signed are projected to result in the generation of more than 500,000 megawatt hours/year in new electricity from renewable sources, and energy savings of more than 87,000 gigajoules/year.  All projects approved under the Program will contribute to a more environmentally and commercially sustainable pulp and paper industry in Canada.

Program Activity: Clean Energy
($ millions)
  Actual
Spending
2007-08
Actual
Spending
2008-09
Planned
Spending
2009-10
Total
Authorities
2009-10
Actual
Spending
2009-10
Variance(s)
Total Grants            
Total Contributions     44.6 48.7 48.7 4.1
Total Other types of transfer payments            
Total Program Activity(ies)     44.6 48.7 48.7 4.1

Comment(s) on Variance(s): In order to meet the objectives of the funding agreement, the Program used the flexibility allowed under the Transfer Payment Directive to provide advance payments to a recipient covering costs to be incurred in April 2010 out of the appropriation for 2009-2010. This amount was cash managed within the Departmental Vote.

Audit completed or planned: Audit Planned for fiscal year 2010-2011

Evaluation completed or planned: TBD

 

Name of Transfer Payment Program: Wind Power Production Incentive Program

Start date: April 1st , 2002

End date: March 31st , 2007

Description: The WPPI Program was set up to help establish wind energy as a full-fledged competitor in the electricity market by providing  over a period of ten years a financial incentive of about 1 cent per each kilowatt-hour produced from the installation of 1,000 MW of new wind power capacity in Canada by 2007.  The Government of Canada is to provide – over a 10-year period – an incentive averaging 1 cent per each kilowatt-hour produced from a qualifying wind energy project.

Strategic Outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved: At year end, 22 wind farms were in operation representing 924 MW of wind energy capacity in Canada and about $315M in contribution funding over 15 years.

Program Activity: Clean Energy
($ millions)
  Actual
Spending
2007-08
Actual
Spending
2008-09
Planned
Spending
2009-10
Total
Authorities
2009-10
Actual
Spending
2009-10
Variance(s)
Total Grants            
Total Contributions 29.3 29.3 35.0 28.2 28 7
Total Other types of transfer payments            
Total Program Activity(ies) 29.3 29.3 35.0 28.2 28 7

Comment(s) on Variance(s): Wind farms supported under the program had lower than expected production numbers resulting in reduced obligations/lower payments to producers under the provisions of contribution agreements.

Audit completed or planned: During 2009-2010, three audits of recipients were completed under the program.

Evaluation completed or planned: The department began an evaluation of renewable energy programs, including the WPPI program, and results are expected in fiscal year 2010-2011.



Up-Front Multi-Year Funding


Name of Recipient: Green Municipal Fund (GMF) (Statutory)

Federation of Canadian Municipalities’ (FCM) Green Municipal Fund (GMF) formerly known as the Green Municipal Enabling Fund (GMEF) and the Green Municipal Investment Fund (GMIF) 

Start Date: March 31st , 2000

End Date: In perpetuity

Total Funding: $550M*

Description:

The Government of Canada endowed the Federation of Canadian Municipalities (FCM), a non-profit organization, with $550 million* to establish the Green Municipal Fund (GMF) to provide a long-term, sustainable financing for municipal governments and their partners.  The GMF invests in plans, studies and projects that provide the best examples of municipal leadership in sustainable development and that can be replicated in other Canadian communities.

The intent of the GMF is to encourage investment in environmental municipal infrastructure.  Specifically, the priorities of the fund are to have a positive impact on the health and the quality of life of Canadians by reducing greenhouse gas (GHG) emissions, improving local air, water and soil quality and promoting renewable energy by supporting environmental studies and projects within the municipal sector.  Additional considerations include the potential for economic and/or social benefit.

The amount of GMF financing available to municipalities is directly related to the environmental, economic and social benefits of the projects undertaken.  Grants of up to 50% to a maximum of $350,000 are available for plans, studies and field tests.  GMF can provide below-market financing for capital projects up to 80% of costs to a maximum of $4M in loans combined with $400,000 in grants.  Brownfield projects are eligible for below-market loans only, with no funding limit.

Under the GMF agreement, the Government of Canada (represented by NRCan and Environment Canada) participates in governance of this revolving fund, along with representatives from the public and private sectors, including municipal officials and technical experts, through a Peer Review Committee and an Advisory Council. The FCM Board of Directors approves projects based on the Council’s recommendations.

*NRCan’s share is $275M

Strategic Outcome(s): Canada is a world leader on environmental responsibility in the development and use of natural resources.

Summary of Results Achieved by the Recipient: As of March 31st , 2009, the GMF had approved over $402M for 735 plans, studies and projects with a total project value of $2.6B.  For up-to-date data as it becomes available, please refer to the most recent GMF annual report at the following link: http://gmf.fcm.ca/about_us/annual_reports/default.asp.

Program Activity: Clean Energy
($ millions)
Actual
Spending
2007-08
Actual
Spending
2008-09
Planned
Spending
2009-10
Total
Authorities
2009-10
Actual
Spending
2009-10
Variance(s)
0.0 0.0 0.0 0.0 0.0 0.0

Comments on Variance(s): N/A

Significant Evaluation findings by the recipient during the reporting year and future plan: An independent review of the Green Municipal Fund was completed in September, 2009.

Significant Audit findings by the recipient during the reporting year and future plan: An independent audit of the Green Municipal Fund was completed in September, 2009.

URL to Recipient’s Site:  http://sustainablecommunities.fcm.ca

URL to Recipient’s Annual Report: http://sustainablecommunities.fcm.ca/About_Us/Annual_Reports

 


Name of Recipient: Sustainable Development Technology Canada (SDTC)- (Statutory) - SD Tech Fund

Start Date: March 26th , 2001

End Date: June 30th , 2015

Total Funding: $ 550M

Description: To stimulate the development and demonstration of Canadian technologies aimed at climate change, clean air, clean water and clean soil.

Strategic Outcome(s): Canada is a world leader on environmental responsibility in the development and use of natural resources.

Summary of Results Achieved by the Recipient: SDTC has allocated a total of $463M to 183 projects. This amount has been leveraged with an additional $1.1B in funding from the project partners for a total project value of $1.6B. The SD Tech Fund portfolio is forecasted to provide discounted GHG reductions of 7-17 Mt CO2e by 2015.

Program Activity: Clean Energy*
($ millions)
Actual
Spending
2007-08
Actual
Spending
2008-09
Planned
Spending
2009-10
Total
Authorities
2009-10
Actual
Spending
2009-10
Variance(s)
0.0 0.0 0.0 0.0 0.0  

Comments on Variance(s): N/A

Significant Evaluation findings by the recipient during the reporting year and future plan: The findings of the June 2009 Interim Evaluation were generally very positive and found continued need for the Fund and good alignment with the current priorities of the Government of Canada. SDTC will also conduct a final evaluation in June.

Significant Audit findings by the recipient during the reporting year and future plan: Natural Resources Canada and Environment Canada are currently conducting a Value-for-Money (Performance) Audit of the SD Tech Fund, as stipulated by the funding agreement. The findings are expected October 2010.

URL to recipient's site: http://www.sdtc.ca/en/index.htm.

URL to recipient's annual report: http://www.sdtc.ca/en/news/annual_reports.htm.

* NRCan share only

 

Name of Recipient: Sustainable Development Technology Canada (SDTC) for the NextGen Biofuels Fund™

Start Date: April 1st , 2007

End Date: Agreement ends Sept 30th , 2027; last disbursement of funds to SDTC by March 31st , 2015

Total Funding: $500M *

Description:

SDTC is managing the NextGen Biofuels Fund™ (NGBF), which will support up to 40% of eligible project costs to a maximum of $200M per project for the establishment of first-of-kind, large-scale demonstration next-generation renewable fuel production facilities to encourage the future sustainability and success of renewable fuels.  Next-generation renewable fuels are derived from non-traditional renewable feedstocks, such as forest biomass, fast-growing grasses, and agricultural residues, and are produced with non-conventional conversion technologies. 
Since next-generation technologies are capital equipment intensive, they constitute a greater debt financing risk.  The support provided by the NGBF will encourage the retention and growth of technology expertise and innovation capacity for next-generation renewable fuels production in Canada. 
Of the $500M in total funding, $200M is statutory funding.  The remaining $300M in funding is to be appropriated by Parliament over the period of 2008/09 to 2014/15. 

* The funding is equally divided between NRCan and Environment Canada.

Strategic Outcome(s): Canada is a world leader on environmental responsibility in the development and use of natural resources.

Summary of Results Achieved by the Recipient:

As of December 31, 2009, the Fund had one application in the Project Assurance Process. In 2009, the global deployment of the next generation renewable fuels industry has been unfavourably impacted by gaps pertaining to technology readiness, the worldwide financial crisis, and the economic downturn.  However, at the beginning of 2010 increased deal flow activity had been observed.

The NGBF is currently tracking over 100 companies, several of which have expressed interest in submitting an application to the NextGen Biofuels Fund™ in the short term.  More specifically, nine projects are currently identified as strong potential applicants for whom promoters are actively working on critical eligibility conditions. The NGBF team is actively engaged in outreach activities which are targeting leading next generation renewable fuels companies.

Program Activity: Clean Energy Statutory
($ millions)
Actual
Spending
2007-08
Actual
Spending
2008-09
Planned
Spending
2009-10
Total
Authorities
2009-10
Actual
Spending
2009-10
Variance(s)
1.6 19.0 20.0 0.0 0.0 20.0

Program Activity:
Clean Energy Appropriation
($ millions)
Actual
Spending
2007-08
Actual
Spending
2008-09
Planned
Spending
2009-10
Total
Authorities
2009-10
Actual
Spending
2009-10
Variance(s)
  12.5 0.0 0.0 0.0 0.0

Comments on Variance(s): SDTC required no additional funding in fiscal year 2009-2010.

Significant Evaluation findings by the recipient during the reporting year and future plan: Three interim evaluations will be performed by an independent 3rd party (Nov 30, 2012, Nov 30, 2017 and Nov 30, 2022); a final evaluation by Sept 30, 2027.  Canada may choose to evaluate the Foundation at any time over the life of the agreement to determine whether it is fulfilling its objectives.

Significant Audit findings by the recipient during the reporting year and future plan: The agreement with SDTC requires the Foundation to hire an auditor to audit the accounts and financial statements and appoint an Audit Committee to oversee the financial management of the Foundation.  It also stipulates that Canada or the Auditor General may undertake a compliance audit at any time over the life of the Fund.

URL to recipient's site:http://www.sdtc.ca.

URL to recipient's annual report: http://www.sdtc.ca/en/news/annual_reports.htm.



Horizontal Initiatives


Name of Horizontal Initiative: Improving the Performance of the Regulatory System for Major Natural Resource Projects

Name of Lead Department(s): Natural Resources Canada

Lead Department Program Activity: Safety, Security and Stewardship – Natural Resource and Landmass Knowledge and Systems

Start Date of the Horizontal Initiative: October 1, 2007

End Date of the Horizontal Initiative: March 31, 2012

Total Federal Funding Allocation (start to end date): $150 million over 5 years

Description of the Horizontal Initiative (including funding agreement):

To respond to the recent growth in the number of major resource projects and move forward on commitments to create a more accountable, predictable and timely regulatory review process, the Government has allocated $150 million over five years to establish the Major Projects Management Office (MPMO) within Natural Resources Canada (NRCan) and to increase the scientific and technical capacity of key regulatory departments and agencies.

The MPMO has been created to provide a single point of entry into the federal regulatory system for all stakeholders, to provide overarching management of the federal regulatory process for major natural resource projects and to lead collaborative research and policy analysis on short-, medium- and longer-term initiatives to further improve the performance of the regulatory system. New capacity funding provided through this initiative will ensure key regulatory departments and agencies are positioned to respond to the recent growth in the number of new major resource projects and will better enable departments to meet their legal responsibilities for Aboriginal Crown consultation associated with their regulatory decisions relative to major resource projects.

This will provide the oversight and capacity needed to address the issues affecting the performance of the federal regulatory system. In short, it will lay the foundation for a more predictable and accountable regulatory system that will improve the competitiveness of Canada's resource industries while ensuring careful consideration of environmental standards and technical requirements.

Shared Outcome(s):

Among the more tangible improvements resulting from this initiative will be the timeliness and predictability of the regulatory process. The environmental review and permitting of major resource projects is targeted to be reduced from upwards of four years to an average of about two years.

Other important outcomes from this proposal include:

  • a more accountable, predictable and timely regulatory review process that will facilitate investment and planning decisions and improve the competitiveness of Canada's resources industries;
  • high quality assessments of the environmental and social effects of resource development so that federal decisions in relation to projects safeguard the environment and promote sustainability; and
  • Aboriginal consultation responsibilities will be fulfilled in a more consistent, adequate and meaningful manner.

Governance Structure(s):

The Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects has established a new governance framework for federal government departments and agencies to facilitate the effective, coordinated, and concurrent discharge of their statutory duties, functions and obligations related to the regulation of major resource projects. It encourages federal government departments to work together to identify areas where the consistency, efficiency and effectiveness of the federal regulatory system can be improved and to develop and implement system improvements. These activities are intended to improve the accountability, transparency, timeliness and predictability of the federal regulatory system for major natural resource projects.

The Minister of Natural Resources is the lead Minister for the Initiative. In collaboration with his counterparts in other regulatory departments, the Minister of Natural Resources will report biannually to Cabinet on progress made towards achieving the objectives of the initiative, and will report annually to Parliament and the public through NRCan's annual reporting requirements.

A Major Projects Deputy Ministers' Committee has been created to serve as the governance body for the implementation of the initiative. This Committee will provide direction for the resolution of project-specific issues and oversee the application of the Cabinet Directive. Membership on this committee includes the Deputy Minister of NRCan(Chair), the Deputy Minister of Fisheries and Oceans Canada, the Deputy Minister of the Environment, the Deputy Minister of Indian Affairs and Northern Development, the Deputy Minister of Transport, the Associate Deputy Minister of Industry, the President of the Canadian Environmental Assessment Agency, the President of the Canadian Nuclear Safety Commission and the Chair of the National Energy Board.

The MPMO has been established to provide overarching management of the federal regulatory system for major resource projects. It will achieve this by working with the federal regulatory departments / agencies to identify areas where the consistency, efficiency and effectiveness of the federal regulatory process can be improved and work with these departments and agencies to implement change. The MPMO will also provide support to the Major Projects Deputy Ministers' Committee, through the provision of data, analysis and other information.

To ensure effective communication with federal regulatory departments on key issues and to facilitate collaboration and cooperation, interdepartmental working groups have been established at the ADM, DG and working levels.

($ millions)
Federal Partner Program Activity (PA) Names of Programs for Federal Partners Total Allocation (from Start to End Date) Planned Spending for
2009-10
Actual Spending for
2009-10
Expected Results for
2009-10
Results Achieved in
2009-10
Natural Resources Canada
Natural Resource and Landmass Knowledge and Systems a. Major Projects Management Office $13,000,000 $4,737,000 $4,666,874

Lead the development and implementation of a consistent, whole of government approach to Aboriginal consultations;

Ensure the environmental assessment and regulatory review processes for major resource projects are integrated and well coordinated through the development of Project Agreements;

Increase the transparency and accountability of the federal regulatory review process through increased oversight and regular monitoring, tracking and reporting on progress against commitments in Project Agreements; and

Identify and implement process improvements to continue to improve the efficiency and effectiveness of the federal regulatory system for major resource projects.

Following its second full year of operations, the MPMO is now overseeing the federal regulatory review process for more than 50 major natural resource projects representing approximately $100 billion in potential new capital investment.

To ensure a more effective and efficient project review process, the MPMO has introduced a number of important improvements, including:

  • Guidelines have been developed to improve process clarity, promote early engagement between project proponents, Aboriginal groups and regulators, and ensure a coordinated federal approach throughout the entire review process;
  • Service standards have been established, including target time lines for each major project review, reflected in interdepartmental project agreements provided to project proponents, and made available to the public (e.g., 2-year average target);
  • A new whole-of-government approach to Aboriginal consultation was successfully applied in the Groundbirch and Keystone XL pipeline projects
  • Performance of federal reviews for projects under the MPMO initiative is being publicly tracked and monitored to ensure greater transparency and accountability.

NRCan/MPMO also chaired monthly meetings of the Major Projects Deputy Ministers' Committee and supporting ADM and DG Committees to ensure timely resolution of project related issues and to advance new policies, procedures and analysis to further improve the performance of the federal regulatory system for major resource projects;

In addition, the MPMO has been leading federal efforts to identify opportunities to fundamentally improve environmental assessment and regulatory permitting processes as well as related Aboriginal consultation activities.  As a key first step, Budget 2010:

  • introduced targeted changes to the Canadian Environmental Assessment Act that will improve the delivery of environmental assessments in Canada, allowing assessments to start sooner, reduce delays and duplication, and result in better assessments overall. 
  • announced the establishment of Participant Funding Programs for the CNSC and the NEB to support more timely and meaningful engagement of all Canadians in the public hearing processes.

As co-chair of the federal / provincial Regulatory Performance Improvement Working Group, the MPMO also worked in close collaboration with provincial governments to identify opportunities to improve the integration of federal and provincial processes. 

In collaboration with federal partners, pilot projects, such as the Line Creek Coal and Northwest Transmission Line delegation agreements with BC, were also implemented to improve integration with provincial regimes and the overall efficiency and effectiveness of project reviews.

Worked in collaboration with the Canadian Northern Economic Development Agency for the successful creation and establishment of the Northern Projects Management Office.

 

Total NRCan $13,000,000 $4,737,000 $4,666,874    
Canadian Environmental Assessment Agency
Environmental Assessment Support   $33,824,000 $8,400,000 $6,172,528

Support a whole-of-government approach to addressing strategic and project-specific environmental assessment issues, including supporting implementation of the major resource projects initiative;

Manage the federal environmental assessment process and related Aboriginal consultation activities for most major resource projects; and

Develop and deliver training and guidance in support of the initiative

Worked in collaboration with other organizations involved in the MPMO initiative to strengthen coordination of EAs federally (such as the coordination of federal participation in review panels), to integrate EA into the federal regulatory process more effectively and, in support of a ‘one-window” approach, to integrate Aboriginal consultation in EA process for major resource projects.

Led the federal environmental assessment process for major natural resource projects (with the exception of CNSC and NEB screening and comprehensive studies), and coordinated aboriginal engagement and consultation activities with the EA of these projects as mandated under the Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects and its Memorandum of Understanding.

Completed an Agency tracking and reporting tool (Project Repository) to improve the pre-EA and EA phases of the regulatory process. Implemented in July 2009 with additional improvements made in October 2009.

Delivery of internal training and guidance in support of matters relevant to the MPMO initiative to Agency staff (existing and new) in headquarters and in 6 regional offices including the EA Project Management course, the Engaging and Consulting Aboriginal Groups course, the maintenance of EA procedures and e-Guide for major resource projects.

Delivery, on a pilot basis, of adapted EA Project Management and Engaging and Consulting Aboriginal Groups courses to other federal organizations involved in the MPMO initiative.

Training on EA procedures and e-Guide for major resource projects also provided to all departments during fall 2009 workshops.

Supported MPMO-led initiatives aimed at working with stakeholders to identify opportunity to improve the regulatory system. (Fall workshop on the Draft Whole-of Government Strategy for Regulatory Improvement)

 

Environmental Assessment Development   $3,497,000 $874,000 $1,058,953

Support the implementation of this horizontal initiative focused on achieving improvements in the process, capacity, and associated Aboriginal consultations with respect to major resource projects;

Contribute to the ongoing development of policies, procedures and guidance materials for enhancing coordination and collaboration on high-quality, timely and predictable environmental assessment within the regulatory approval process; and

Contribute to the development of policies and procedures in support of the integration of Aboriginal Crown consultations in the environmental assessment and regulatory approval process.

Developed jointly with other organizations involved in the MPMO initiative procedural documents and templates to improve process clarity, promote early engagement between project proponents and regulators, and ensure a coordinated federal approach throughout the entire review process.

Established jointly with other organizations involved in the MPMO initiative policies and guidance materials for enhancing coordination and collaboration on high-quality, timely and predictable environmental assessment within the regulatory approval process, such as procedural guidance on comprehensive studies and multijurisdictional screenings (July 2009), and guidance on the timing of the posting of the Notice of Commencement for major resource projects (December 2009).

Ongoing development, jointly with other organizations involved in the MPMO initiative of new policies, processes, procedures and guidance materials on the integration of Aboriginal Crown consultations in the environmental assessment and regulatory approval process, such as a draft policy framework to guide the activities of the Agency as Crown Consultation Coordinator for major resource projects.

Internal Support   $10,004,000 $2,426,000 $2,798,232 Core support services are provided to support program delivery

Key national staffing processes completed.

New staff successfully integrated into the organization.

Accommodation required was completed.

Provided infrastructure support for Program Delivery.

Total CEAA $47,325,000 $11,700,000 $10,029,714    
Environment Canada
Biodiversity is conserved and protected Wildlife program $2,352,116 $466,159 $328,881

The efficiency and effectiveness of the Canadian Wildlife Service's regulatory role in major resource projects is improved; and

Guidance is developed to support Canadian Wildlife Service involvement in the EA process for major resource projects.

Draft policies related to the issuance of permits under the Species at Risk Act, the Canada Wildlife Act and the Migratory Birds Convention Act are under development.

Developed draft guidance documents to facilitate the incorporation of wildlife considerations in federal environmental assessment processes for major resource projects.
Water is clean, safe and secure Aquatic ecosystems are conserved and protected $614,683 $123,841 $133,429 EC's responsibilities associated with the International River Improvements Act are supported by standard operating procedures and policies for licensing.

EC’s responsibilities in the EA process associated with the International River Improvements Act (IRIA) for major natural resource projects are supported by guidance, processes and issues reviews, providing comments on hydrology, water quantity and water management.

The review of administrative procedures under the IRIA was undertaken and new regulations were drafted for departmental review. 

A preliminary review of water modelling tools was performed to gauge applicability for reviews of IRIA and MPMO projects.

Canadians adopt approaches that ensure the sustainable use and management of natural capital and working landscapes Environmental assessment and ecological monitoring $4,533,659 $868,975 $456,800

Environment Canada's participation in the Major Projects Deputy Ministers' Committee and associated governance structure is supported;

Departmental EA processes are streamlined to ensure efficiency and effectiveness of the MPMOregulatory process for major resource projects;

Regional offices are supported in the delivery of streamlining priorities for major resource projects; and

Environment Canada's participation in the regulatory improvement initiative for major resource projects is well coordinated.

MPMO’s governance structure is supported through participation in the Major Projects Deputy Minister’s Committee and associated committees and working groups.

Departmental EA processes were streamlined, meeting established timelines and incorporating lessons learned from previous EA experience through workshops, post-project evaluations and contributing to operational policy statements.

Regional offices received dedicated support in the delivery of streamlining priorities for major resource projects through National Program liaison activities and coordination.

EC’s participation in the regulatory improvement initiative for major resources projects is well coordinated through the dedicated National Program liaison function, with defined responsibilities and regular updating on progress associated with the initiative and project agreements.

EC contributed to the interdepartmental impact analysis of Supreme Court decisions and supported related guidance on compliance

Risks to Canadians, their health and their environment posed by toxic and other harmful substances are reduced Risk management/ Risk mitigation and implementation $2,723,837 $562,122 $590,299

ECprovides input into the federal EA process for major resource projects through the provision of expertise;

Environment Canada's regulatory decisions related to Ocean Disposal permitting are timely; and

Environment Canada's involvement in the regulatory process for major resource projects is supported by guidance.

EC provided expert advice on major projects regarding disposal at sea, energy-related projects, mining projects and Metal Mining Effluent Regulations (MMER) for tailings impoundment areas.

Ocean Disposal permits were assessed within the 120 day service standard and requirements to shorten overall time required to process a permit were examined.

EC’s involvement in the regulatory process for major resource projects is supported by triage systems and Regulatory Impact Analysis development work for regulatory amendments for the MMER.

Processing time for MMER amendments were reduced by 60% since 2006.
Relations with other governments and partners are effectively managed in support of environmental priorities Inter-governmental and stakeholder relations $596,818 $122,302 $91,961

Regular, timely, and strategic advice is provided on consultation and engaging Aboriginal groups throughout the regulatory process for major resource projects; and,

Environment Canada's participation on the Crown Oversight Committee and associated working groups on Aboriginal consultation is supported.

Worked with MPMO on the development of a Crown record management system.

Provided advice and support on public participation and aboriginal consultations relating to major natural resource projects.

Developed a departmental public participation and aboriginal consultation policy.

Ensured Environment Canada participation on various aboriginal consultation working groups.
Strategic management support enables the department to meet its objectives Legal services $650,739 $141,844 $162,100 Timely legal advice and support on delivery of national EAprogram involvement in major resource projects is provided. Supported delivery of national EA Program by providing timely legal advice and support in areas including court challenges and specific project EA.
Internal Services Core Support Services $1,028,148 $214,757 $251,180 Core support services are provided to support program delivery. Core support services are provided to support program delivery.
Total EC $12,500,000 $2,500,000 $2,014,650    
Fisheries and Oceans Canada
Habitat Management Habitat Management $34,041,800 $6,808,360 $6,296,195

Participation in the governance mechanism, e.g., Major Projects Deputy Ministers' Committee and supporting governance structures; and

Provision of DFO technical capacity in the areas of the Fisheries Act, Species at Risk Act (SARA), Canadian Environmental Assessment Act (CEAA) and Aboriginal consultation activities relative to DFO's regulatory decisions associated with major resource projects identified under this initiative.

Participated in the governance mechanism, i.e., Major Projects Deputy Ministers’ Committee and other supporting governance structures;

Provided continuing advice and  input to the operationalization of the Initiative;

Provided DFO input to analyses of legislative/regulatory and policy issues associated with the federal regulatory system and development of the Strategic Framework and subsequent initiatives arising from that Framework;

Participated in the development of numerous Project Agreements; and

Provided DFO technical capacity in the areas of the Fisheries Act, Species at Risk Act (SARA), Canadian Environmental Assessment Act (CEAA) and Aboriginal consultation activities relative to DFO's regulatory decisions associated with major resource projects identified under this initiative.

Legal Services Legal Services $958,200 $191,640 $83,508 Provision of Legal Services support to DFO to operationalize the initiative and relative to the Fisheries Act, CEAA, SARA and Aboriginal consultation issues associated with major resource projects identified under the initiative.

Provided legal advice and support of DFO’s participation in the governance mechanism, i.e., Major Projects Deputy Ministers’ Committee and other supporting governance structures.

Provided legal advice and support of DFO’s input to MPMO to operationalize the initiatives.

Provided legal advice and support of DFO’s input to MPMO analyses of legislative/regulatory issues and development of Strategic Framework and subsequent initiatives arising from that Framework.

Provided legal advice and support of various DFO work products including departmental guidance and procedures.

Provided legal advice and support to DFO departmental officials through monthly MPMO meetings.

Provided legal advice and support in of DFO’s participation in the development of numerous Project Agreements.

Weekly participation in the MPMO Legal Services Working Group and some half-day meetings.

Total DFO $35,000,000 $7,000,000 $6,379,703    
Indian and Northern Affairs Canada
Northern Land and Resources Northern Affairs Organization $6,600,000 $1,320,000 $1,473,657

Enhance capacity of the INAC NWT Regional Office to enable them to better meet their environmental assessment, Aboriginal consultation and regulatory responsibilities; and

Provide funding support to regulatory boards in the NWTto allow them to better meet their aboriginal consultation, regulatory permitting and environmental assessment responsibilities with respect to major resource projects.

For each of six environmental assessments, led INAC participation and technical input, and contributed to Crown consultation assessment and planning.

Inspection Reporting and Risk Assessment (IRRA) system was rolled out in April of 2009 which included three additional updates to enhance the system.

Developed collaborative policy frameworks through the continued work of the NT Region’s Consultation Advisory Group, the publication of a communications brochure aimed at informing industry and the public about s.35 Consultation and Provided support on most urgent consultation files.

Participation in national initiatives, work with treaty negotiation tables, and the establishment of a central records filing system for use nationally and regionally.

Funding provided was used towards participation in six different land and water Working Groups as well as establishing an electronic Public Registry for regulatory applications and approval processes.  Some environmental assessment boards used resources to develop a strategic and business plan, operating guides and regulatory procedures documents.  

Responsible Federal Stewardship Lands and Economic Development – Environmental Management $3,400,000 $680,000 $256,343

Enhance the capacity of INACregional offices to enable them to better meet their environmental assessment, Aboriginal consultation and regulatory responsibilities; and

Provide funding support to First Nations communities to build capacity to better equip them to coordinate and to participate in major resource development projects

HQ provided regions with FTE/0&M capacity funding (Saskatchewan, Alberta and Ontario) to support participate on project teams.

HQ and Regions reviewed and provided input on all MPMO Project Agreements. 

HQ and Regions reviewed Project Descriptions and provided input on Environmental Impact Statements in which the department was a Responsible Authority.

HQ participated in the regulatory improvements initiatives and managed / supported the MPMO program.

$270K in G&C was in a frozen allotment, pending the adoption by TBS of INAC’s RMAF/RBAF. These funds were declared surplus due to the inability to utilize the funds so late in the fiscal year when the funding was finally released.

Total INAC $10,000,000 $2,000,000 $1,730,000    
Transport Canada
Transportation Safety and Security   $3,365,555 $864,421  

To participate in the various governance mechanisms for the MPMO;

TC (headquarters and regional staff) to participate in working groups to assist with the creation and approval of key documents, processes and tracking systems required to operationalize the MPMOoffice; and

TC to participate in projects in the MPMOprocess.

 

TC participated in various governance mechanisms established for the MPMO initiative, or that are aiding the MPMO initiative including the Director General, Assistant Deputy Minister and Deputy Minister Committees, and the Environmental Assessment Project Committee [EAPC]);

TC (headquarters and regional staff) participated in interdepartmental working groups to assist with the creation and approval of key documents, processes, and tracking systems required to operationalize the MPMO initiative; and,

TC maintained a headquarters MPMO committee in order to ensure that new MPMO processes are applied internally in as efficient a manner as possible and that advice to the Associate Deputy Minister is provided in a timely and coordinated manner.

Transportation Policy Development and Infrastructure Programs   $1,813,090 $448,991 Note: Actual spending transferred from this Program Activity Area to the Sustainable Transportation Development and the Environment program. TCto develop procedures for and participate in consultation with Aboriginal groups TC has created an Aboriginal Consultation Unit in both HQ and in the regions to assist in implementing Aboriginal consultation for MPMO projects.  TC has also developed Interim Aboriginal Consultation and Accommodation Guidelines, tools and training materials.  Finally, TC liaises with the MPMO and other government departments in developing a whole-of-government approach for Aboriginal Consultation.
Sustainable Transportation Development and the Environment   $5,413,592 $1,341,515  

To participate in the various governance mechanisms for the MPMO;

TC(headquarters and regional staff) to participate in working groups to assist with the creation and approval of key documents, processes and tracking systems required to operationalize the MPMO office;

TCto work on departmental processes to ensure new MPMO processes are applied in an efficient manner internally; and,

TCto participate in projects in the MPMO process.

TC participated in various governance mechanisms established for the MPMO initiative, or that are aiding the MPMO initiative including the Director General, Assistant Deputy Minister and Deputy Minister Committees, and the Environmental Assessment Project Committee [EAPC]);

TC (headquarters and regional staff) participated in working groups to assist with the creation and approval of key documents, processes and tracking systems required to operationalize the MPMO initiative;

TC maintained a headquarters MPMO committee in order to ensure new MPMO processes are applied internally in as efficient a manner as possible, and that advice to be provided to the Associate Deputy Minister is provided in a timely and coordinated manner;

TC HQ held monthly teleconferences with regional staff to ensure smooth implementation of the initiative; and,

Funding received was used in order to increase capacity for technical review of environmental assessments (EAs) and other key aspects of carrying out EAs for major resource projects.

Internal Services   $3,407,763 845,073  

TCto hire lawyers to increase capacity to deal with legal issues associated with the regulatory process across the country; and

To support corporate involvement.

TC has engaged their legal services staff for review of various MPMO documents; and,

Legal services staff applied a portfolio approach to deal with legal issues associated with the regulatory process across the country.
Total TC $14,000,000 $3,500,000      
Total $131,825,000 $31,200,000      

* Totals do not equal the total allocation under the initiative (i.e.; $150 million over five years) due to changes that have occurred in departmental Program Activity Architectures since the beginning of the initiative

** Canadian Environmental Assessment Agency: $1,400,000 of the planned spending was reprofiled to the next fiscal year resulting in a small surplus of $270K in 2009-10. 

Comments on Variances:

Results to be achieved by non-federal partners (if applicable):

Contact information:

Mr. Philip Jennings
Assistant Deputy Minister
Major Projects Management Office
Natural Resources Canada
155 Queen Street, 2nd Floor
Ottawa, ON K1A 0E4




Green Procurement

Meeting Policy Requirements

Has the department incorporated environmental performance considerations in its procurement decision-making processes?  In progress

In progress

Summary of initiatives to incorporate environmental performance considerations in procurement decision-making processes:

  • Have support of Green Procurement Policy reflected in Performance Management Agreements (PMAs).
  • All purchasing activities at NRCan must be entered into the departmental procurement module. All transactions outside of acquisition card purchases have a mandatory field that must be completed to indicate if the purchase is green or not. For service transactions valued at over $5,000 a mandatory checklist, which includes environmental considerations, is completed by the RC Manager. Acquisition cards are used as both a procurement and a payment tool, and would remain outside the scope of specific green procurement controls.
  • Participation in departmental and interdepartmental meetings on green procurement
  • Fully supporting the use of teleworking and other analogous efforts.
  • SSO ITS (Requirements Assessment Team) in collaboration with Procurement Services have strongly encouraged the use of network printer consumables and suppliers that offer a collect and credit service, i.e. recycling, for toner cartridges.

Environmental performance considerations: When purchasing a vehicle, the Departmental Fleet Manager will use the following factors to determine which vehicle to order:
1.) vehicle technologies that will contribute to a maximum reduction in overall life-cycle emissions;
2.) alternative-fuel vehicles; other environmental considerations; and
3.) life-cycle costs, including initial purchase cost, fuel efficiency and projected resale value. Departmental Fleet Management will also analyze and evaluate various transportation options so they can manage ground transportation in a way that will reduce total travel cost and directly contribute to a reduction of greenhouse gas from tailpipe emissions.

Results achieved:

  • PMAshave continued to include the contribution of and support for green procurement policy objectives.
  • Periodic procedural review measures have confirmed compliance with the procurement process and control specifications in No. 2 above.
  • Made Green procurement (GP) online course mandatory for all procurement staff.
  • All procurement staff members in NCR completed their respective GP training by March 31st , 2010.

Contributions to facilitate government-wide implementation of green procurement:

Natural Resources Canada’s contributions to the ongoing management of the federal Policy on Green Procurement (PGP) during fiscal year 2009-2010 included activities in the following areas:

Performance Measurement Framework:

  • Provision of advice to PWGSC on further refinement of the Framework.

Communications and Engagement:

  • Provision of advice and expertise to refine/update the Green Procurement communications plan and engagement strategy.
  • Contribution to the joint planning of the second interdepartmental Green Procurement Forum which was hosted at NRCan.

Guidelines and Tools:

  • Provision of advice and expertise on the review/consolidation of guidelines and tools for Green Procurement, planned revisions to the green procurement web site hosted by PWGSC, including web content.

Training:

  • Provision of advise and technical expertise on updating the online Green Procurement course hosted by the Canada School of Public Service

Commodity Management:

  • Provision of advice and expertise to PWGSC on the establishment of green government-wide procurement instruments.

Green Procurement Targets

Has the department established green procurement targets?

In progress

Summary of green procurement targets:

  • Increase the number of photocopier rentals/leases that qualify as green procurements (i.e. meet green procurement criteria).
  • Increase the number of IT hardware purchases that qualify as a green procurements.

Results achieved:

  • The percentage of photocopier rentals/leases that qualified as green procurements in 2009–10 reached 28% ($281,400 out of $1,009,193).
  • The percentage of IT hardware purchases* that qualified as a green procurements in 2008–09 was 12.8% [* based on a search in the procurement system using line object 0926 (Computer hardware equipment - large/medium) and 0928 (Computer hardware equipment – small)]. SSO Procurement Services uses mandatory Standing Offers set up by PWGSC for GP, and uses multifunctional printing devices to reduce power consumption, ink cartridge usage. Also Procurement Services avails itself to videoconference usage.


Response to Parliamentary Committees and External Audits


Response to Parliamentary Committees

On October 9, 2009 the Minister of Natural Resources presented to the House of Commons the Government's response to the Standing Committee on Natural Resources' report entitled Combining our Energies: Integrated Energy Systems for Canadian Communities that was presented to the House on June 17, 2009. The response addresses each of the report's nine recommendations in detail.

This response can be found online at:
http://www2.parl.gc.ca/HousePublications/Publication.aspx?DocId=4140521&
Language=E&Mode=1&Parl=40&Ses=2


Response to the Office of the Auditor General (OAG)

As a result of the new Audit Policy, the OAG annually sends the Audit Branch all the previous recommendations it has made to NRCan that are not considered completed for an update.  For 2009-10, the department was asked to update and assess the status of previous recommendations.  Responses were provided accordingly by the audited entities and assessed by the Audit Branch according to their responses.  We however, cannot provide assurance on the responses. 

The OAG audits included:

2005 – 04 OAG Chapter 1 –NRCan– Governance and Strategic Management

For more information on this audit, go to 
http://oag-bvg.gc.ca/internet/English/parl_oag_200504_01_e_14932.html  

Recommendation 1.45
OAG recommends that NRCan should develop a corporate strategic plan to ensure that all sectors address key aspects of its legislation and government priorities. To do so, it should implement a systematic strategic planning process across all sectors.

Response: NRCan has continued to steer the development and implementation of corporate-level planning. Working through a DG level task group, a corporate planning network, and the Strategic Planning & Reporting Division, the Departmental Management Committee (DMC) guides the implementation of the Integrated Planning and Reporting (IPR) processes on a consistent basis across the Department. A DG-level committee led the development of a 2010-13 integrated business plan and of the NRCan story. 

Recommendation 1.56
OAG recommended that NRCan should improve its governance processes specifically with respect to mandates, resources, roles, and responsibilities for the managers of horizontal issues; and develop more strategic governance processes promptly to ensure that its strategies and actions are coherent and that they adequately address key aspects of its legislation and government priorities and are effectively monitored.

Response: NRCan has been undergoing a process of departmental renewal, spurred by the need to develop a more collaborative, integrated and results-based organization. The recent strategic assessment review of priority and performance of NRCan programs and improvements to the governance processes has illustrated how the department had been responsive to the government's agenda in recent years.  NRCan has examined its roles to determine where it can best lead and how it can best help Canada harness the full value of all of its assets to build a stronger, more resilient resource economy. 
 
Recommendation 1.66
OAG recommended that NRCan should determine and obtain the industry information that it needs to support strategic decision making by producing it internally or obtaining it from outside sources.

Response:  Providing decision-makers with the appropriate information, including industry information, has been a major area of focus for NRCan as information and knowledge have always been at the cornerstone of the department's business. Efforts have focused on means to identify what knowledge was required and facilitate its sharing and integration in support to strategic decision making. NRCan’s governance structure and the various tools put in place (wiki, blogs, etc) enable staff to share it.  The various branches of the Science and Policy Integration sector have and will continue to integrate that information through information-sharing products such as the weekly Natural Resource Dashboard, the monthly Economic Monitor, the annual Report on Plans and Priorities, etc or through documents supporting policy or management-related decisions such as decks, briefing notes, TBS submissions, Memorandum to Cabinet.

Recommendation 1.74
OAG recommended that NRCan should document the competencies and capacities of its current workforce, develop a clear understanding of the competencies and capacities that it will need to develop or acquire to replace the large percentage of key staff eligible to retire in the next few years, and develop and implement a human resources plan that aligns the competencies required with future business needs.   

Response: In October 2009, NRCan launched its "one department" integrated business approach to planning and reporting to integrate corporate enablers into one cohesive departmental plan. The integrated business planning process was supported with integrated planning tools, which were completed at the sub-sub activity level.  A governance structure was established to guide the development of the business plan.  NRCan's first integrated business plan was submitted to the Treasury Board Secretariat (TBS) in early March 2010.

Recommendation 1.96
OAG recommended that NRCan should develop plans and improve its risk analyses to deal with its responsibilities in emergency situations. In particular, NRCan should develop, in co-ordination with other key stakeholders, emergency plans in the areas where it is required to respond to civil emergencies, particularly where it has the lead federal role; and re-examine its risk assessment guidance and apply risk assessment processes consistently across its five operational sectors, including applying a more coherent analysis of the economic impact of potential threats.

Response: Following Public Safety endorsement, NRCan has transitioned from Civil Emergency Plans to a new suite of Emergency Management Plans which came into force on October 1, 2009.  Selected plans were exercised and tested in the series of exercises leading to the Vancouver Olympics Games (Ex SILVER and Ex GOLD).  Exercises requirements are captured in the Emergency Management Planning Directive and are scheduled on a regular basis.

Recommendation 1.111
OAG recommended that NRCan should improve its performance measurement framework and reporting to provide parliamentarians with better information on the results and outcomes of its programs. In particular, it should develop a systematic process for linking performance targets at the corporate level with business plans; and improve its performance reports by including an analysis of its legislated mandate, linking the Department's priorities to government priorities and rationalizing its assessment of its performance against various frameworks.

Response: The 2009-10 strategic review assessment identified improvements required to performance indicators at the strategic outcome and program activity levels.  The department moved quickly and refined its Program Activity Architecture and developed a series of new performance indicators for 2010-11.  A systematic initiative for continuous improvement of the NRCan Performance Measurement Framework is now embedded in the NRCan's annual planning cycle.  Each fall, the department has the opportunity to review its performance indicators at the sub activity levels. 

2006 – 09 CESD Chapter 1 – Managing the Federal Approach to Climate Change

For more information on this audit, go to 
http://www.oag-bvg.gc.ca/internet/English/parl_cesd_200609_01_e_14983.html

Recommendation 1.44
It was recommended that NRCan should ensure that the model, data and results from the 2005 memorandum of understanding with the automotive industry are independently verified and that the results of the publication are reported publicly.

Response: NRCan is has identified an independent third-party to perform a verification of the accounting model used to measure auto industry’s progress against the first interim target established in the memorandum of understanding, and the contracting process is underway. The report on the 2007 interim goal is expected to be released by the end of the 2009/10 fiscal year.
 
Recommendation 1.45
It was recommended that in any future voluntary agreements, NRCan should establish requirements similar to those found in Environment Canada’s 2001 Policy Framework for Environmental Performance Agreements. While the automotive industry agreement addresses many of these requirements, at a minimum, such future agreements should include
-senior-level commitment by involved parties,
-clearly identified environmental objectives,
-baseline levels measured at the beginning of the agreement,
-clear targets with timelines,
-meaningful performance measures,
-clearly defined roles and responsibilities for all parties,
-consequences for failing to meet targets and incentives for achieving them,
-periodic public reporting requirements,
-provision for regular credible verification, and
-regular evaluation of the agreement to determine progress and options for implementing corrective action, where necessary.

Response: No such voluntary agreements have been established by the OEE since the last update. Obsolete here means N/A.

2006 – 09 CESD Chapter 2 – Adapting to the Impacts of Climate Change

For more information on this audit, go to 
http://www.oag-bvg.gc.ca/internet/English/parl_cesd_200609_02_e_14984.html

Recommendation 2.56
It was recommended that NRCan work with other federal departments and agencies to produce or use information needed for adaptation efforts and with other levels of government and stakeholders, Environment Canada and NRCan should identify and fill gaps in the needed information, including results of impacts and adaptation research and results from climate science; and identify the demand for initiatives that provide decision makers with access to information and technical expertise on adaptation tailored to their needs. Based on that work, they should strengthen existing initiatives and establish others, as required.

Response: As of March 2010, NRCan has signed contribution agreements to implement Regional Adaptation Collaboratives in 5 regions covering all of southern Canada.  NRCan expects to have arrangements in place for the North by May 2010.

2006 – 09 CESD Chapter 3 – Reducing Greenhouse Gases Emitted During Energy Production and Consumption

For more information on this audit, go to 
http://www.oag-bvg.gc.ca/internet/English/parl_cesd_200609_03_e_14985.html

Recommendation 3.27
It was recommended that NRCan should lead the development of a wind power strategy for Canada, in collaboration with the provinces and wind industry. The strategy should provide a vision for wind power in Canada and identify what governments will do to support it, and over what timeframe.

Response: NRCan developed a discussion paper entitled Towards an Enabling Wind Energy Policy Framework in Canada which was the subject of consultations with industry, utilities, environmental groups and provinces in Ottawa and Montreal over the course of 2008. In 2009, NRCan completed the development of a Wind Technology Roadmap, an industry-led report that identifies key issues for wind energy development in Canada and makes recommendations for government and industry. Through the Discussion paper and the Technology Roadmap, NRCan is continuing to support the development of a vision for wind power in Canada.

Recommendation 3.32
It was recommended that NRCan should complete the evaluation of the Wind Power Production Incentive that it committed to in 2002. It should also complete a thorough economic analysis to clarify the extent to which the economics of wind power are changing across Canada and whether there are implications for this program.

Response: NRCan has developed a comprehensive financial model to assess levelized unit cost of wind energy, the impacts of the ecoENERGY for Renewable power program incentive and federal tax measures on the economics of wind power. The model and its results have been the subject of consultations with other Departments and the Wind Energy Industry. The evaluation of the WPPI Program started in 2009 and it is expected to be completed in April 2010.

Recommendation 3.61
It was recommended that NRCan, on behalf of the Government of Canada should make clear to Parliament by the end of 2006 how and to what degree the country will reduce greenhouse gas emissions in the oil and gas sector, both in the immediate and longer term. At the same time, NRCan should develop a corresponding implementation plan.

Response: NRCan recognizes the importance of addressing greenhouse gas emissions in the oil and gas sector. The Government has aligned its GHG reduction target with that of the US, committing to reduce Canada's GHG emissions by 17 percent from 2005 levels by 2020.
Environment Canada (EC) is the lead department for the implementation of the Government's plan to address GHG emissions. NRCan has been engaged in the development of Canada's climate change agenda and will continue to work with EC officials on policy issues related to GHG emissions in the oil and gas sector.

Recommendation 3.66
It was recommended that NRCan should ensure that clear and concrete greenhouse gas reduction targets are established for each of its programs funded for this purpose. The Department should provide clear and detailed information to Parliament about the performance of its programs compared with greenhouse gas emission targets, and the costs incurred.

Response: Estimates of GHG emissions reductions achieved and expenses incurred by NRCan's ecoENERGY programs are reported through the annual Clean Air Agenda Horizontal Performance Reports, which are submitted to Parliament as part of Environment Canada's Departmental Performance Report.  As well, NRCan's programs are included in the Government's annual Climate Change Plan for the Purposes of the Kyoto Protocol Implementation Act, which provides updates on each program's expected emissions reductions during the 2008-2012 period. 

Recommendation 3.68
It was recommended that NRCan should establish consistent practices for financial management and reporting of authorized funding and spending at the program level.

Response: To ensure effective interdepartmental management of clean air initiatives, NRCan is participating with 8 federal departments in the Horizontal Management Accountability and Reporting Framework (HMARF) for the Clean Air Agenda. The HMARF (approved by the Treasury Board on April 3, 2008) establishes consistent practices for the management and reporting of financial information at the program level. In particular, the HMARF provides an integrated view of CAA resources traceable to sources of funds, including allocations from the fiscal framework, and linked to results. NRCan's financial management and reporting practices are aligned with the requirements established under HMARF. For instance, NRCan reports annually on program-level spending through the CAA Horizontal Performance Report, and on planned spending through the CAA Horizontal Report on Plans and Priorities.

For further information, please contact NRCan’s Internal Audit Branch.


KPMG audit of the Geomatics Canada Revolving Fund
KPMG opined that the financial statements present fairly, in all material respects, the financial position of the GCRF as of March 31, 2009, and the results of its operations and the changes in its financial position for the year then ended in accordance with the accounting principles for revolving funds of the Government of Canada. This is the fifteenth consecutive year since the inception of the GCRF that external auditors have issued an unqualified opinion on the financial statements of the Fund.


Internal Audits and Evaluations

Internal Audits


Name of Internal Audit Audit Type Status Completion Date
Commercial Off-the-Shelf Software Management Assurance Completed Q1 09/10
Financial Management Framework Assurance Completed Q1 09/10
Pay and Pay Related Benefits Assurance Completed Q1 09/10
Public Websites Management Practices Assurance Completed Q1 09/10
Audit of Shared Services Office Management Processes Assurance Completed Q2 09/10
Audit of Statutory Transfer Nova Scotia and Newfoundland Assurance Completed Q2 09/10
Audit of Treasury Board Authorities and Conditions Assurance Completed Q2 09/10
Hospitality – Follow-up Audit Assurance Completed Q2 09/10
Values and Ethics – Follow-up Audit Assurance Completed Q2 09/10
Audit of ecoENERGY Retrofit – Small and Medium Organizations Assurance Completed Q3 09/10
Audit of GeoConnections Program Assurance Completed Q3 09/10
Information Management – Follow-up Audit Assurance Completed Q3 09/10
Accelerated Infrastructure Program* Assurance Completed Q4 09/10
Audit of ecoENERGY Retrofit Homes Owners Assurance Completed Q4 09/10
Expanding Market Opportunities Program (Forestry) Assurance Completed Q4 09/10
Financial Forecasting and Year-end Expenditures Assurance Completed Q4 09/10
Promoting Forestry Use / Innovation – Development Assurance Completed Q4 09/10
Specified Purpose Accounts – Follow-up Audit Assurance Completed Q4 09/10
Audit of IT Security (System Development Life Cycle) Assurance Ongoing Q1 10/11
Custom Software Development Assurance Ongoing Q110/11
International Travel Assurance Ongoing Q1 10/11
Accounts Receivable and Revenue Management Assurance Ongoing Q2 10/11
Audit of Departmental Asset Management Assurance Ongoing Q2 10/11
Major Project Management Office Assurance Ongoing Q2 10/11
Nuclear Legacy Liability Program Assurance Ongoing Q2 10/11
ecoENERGY for Biofuels Program Assurance Ongoing Q3 10/11
Physical Security ** Assurance Ongoing Q3 10/11
Financial Statement Preparation and Reporting Assurance Ongoing Q4 10/11
Payroll and Benefits – Overtime, Vacation and Other Benefits Assurance Ongoing Q4 10/11
Audit of Strategic Planning Assurance Ongoing FY 11/12

Electronic Link to Audits Reports: http://nrcan.gc.ca/audit/index-eng.php

* The Accelerated Infrastructure Program includes the following areas: Accelerated Federal Contaminated Sites Action Plan, Arctic Research Facilities, and, Modernizing Federal Labs (Planning & Project Mgmt).
** Departmental In-Reserve Audits – Audit Committee Consultation Required Prior to Implementation.

Internal Evaluation - DRAFT June 15, 2010)


Name of Evaluation Program Activity Program Type Status Completion Date
Minerals and Metals Sector (MMS) Science and Technology (S&T) Evaluation MMS Science and Technology (2007-08 PAA) Summative Complete June 2009
Built Environment Evaluation Built Environment (2007-08 PAA) Summative Complete July 2009
Earth Sciences Sector Economic Opportunities Evaluation ESS Economic Opportunities (2007-08 PAA) Summative Complete July 2009
Canada’s Submission to the Commission on the Limits of the Continental Shelf Under the United Nations Convention on the Law of the Sea (The “Continental Shelf Program”) Basic Infrastructure (2008-09 PAA) Formative Inter-departmental Complete December 2009

Electronic Link to Report:
http://nrcan.gc.ca/evaluation/index-eng.php

Electronic Link to Evaluation Plan:
http://nrcan.gc.ca/evaluation/index-eng.php

Minerals and Metals Sector (MMS) Science and Technology (S&T) Evaluation

A June 2009 evaluation examined the science and technology (S&T) programs of the Material Technology Laboratory (MTL) and the Mineral and Mining Science Laboratories (MMSL) within the Minerals and Metals Sector of NRCan.  The evaluation found that the S&T activities of the laboratories were aligned with federal and NRCan priorities.   The research projects undertaken by the laboratories produced sound scientific knowledge and innovative technologies, and contributed significantly to applied S&T in the sector.  Many of these projects generated good quality and high-impact peer-reviewed publications and conference presentations.  Moreover, the laboratories were successful in transferring their S&T knowledge, expert advice, and technologies to industry and other stakeholders.  The evaluation noted that the two laboratories face numerous challenges including: budgetary pressures; the need for capital investment; retirements and MTL’s relocation to Hamilton in 2010.

Built Environment Evaluation

A July 2009 evaluation of the Build Environment Sub-sub Activity found that its objectives and activities were in line with federal and NRCan priorities regarding the environment including the federal strategy to cut greenhouse gas emissions to address climate change.  The evaluation concluded that the federal government is a key contributor to innovation in the Built Environment area.  The Sub-sub Activity has led to the creation of research and development work which would not have occurred otherwise.  The evaluation also found that the Sub-sub Activity was delivered in a cost-effective manner.   However, it is difficult to determine the long-term impact of the Built Environment’s work. 

Earth Sciences Sector Economic Opportunities Evaluation

A July 2009 evaluation examined the Earth Sciences Sector’s Economic Opportunities Sub-Activity.  The objective of this Sub-activity was to create new economic opportunities through the provision of geoscience information for mineral and energy exploration.  The Sub-activity included five programs: Targeted Geoscience Initiative-3; Northern Resources Development; Secure Canadian Energy Supply Geoscience; for Ocean Management and Gas Hydrates Fuel for the Future?   The evaluation confirmed that the programs produced numerous new and innovative geoscience products, many of which would not have been produced in the absence of the Programs. Despite some delays and gaps, the programs address the ongoing needs of federal and provincial governments, the private sector, communities and NGOs for up-to-date geoscience information to help stimulate exploration of minerals and hydrocarbons, secure affordable energy and resolve conflicting uses of the natural environment.   There has been very close collaboration with partners and stakeholders in all of the programs.

Canada’s Submission to the Commission on the Limits of the Continental Shelf Under the United Nations Convention on the Law of the Sea (The “Continental Shelf Program”)

The United Nations Convention on the Law of the Sea provides that, where a State intends to make a submission to the United Nations Commission on the Limits of the Continental Shelf to delineate the outer edge of its continental shelf beyond 200 nautical miles, it must do so within 10 years of becoming a Party to the Convention.  Canada’s deadline for providing its submission is December, 2013.  Fisheries and Oceans (DFO) and Natural Resources Canada are responsible for collecting the data required to assess and substantiate the extent of Canada’s continental shelf.   This information will be used by the Department of Foreign Affairs and International Trade to develop Canada’s submission.  An interdepartmental evaluation on the Continental Shelf Program, led by DFO, was completed in December 2009.  The evaluation confirmed that the preparation phase of the Program has been completed and data collection is proceeding according to plan and within budget.  The evaluation noted that the Program is managing significant technical, financial and human resources risks.